Key Ecommerce Conversion Rate Benchmarks To Boost Your Marketing Strategy
Today’s digital world is filled with plenty of data that anyone can access.
With a few clicks, you can pull out any data you want.
As an entrepreneur or a seasoned businessman, you would very well know the importance of accurate data. It is your crucial tool to verify and manage your strategy. With that, you can easily gain insight into your flaws and sort them out to achieve your goal.
Now, ecommerce is surging up the hill. This is the best time to build a perfect strategy and improve your ecommerce stores for 2022. To do so, you must be keen on accurate and authentic ecommerce benchmarks to make vital decisions.
So, I have compiled a list of accessible industry sources focusing on the retail ecommerce conversion rate benchmark. All these data are backed up with reliable and best sources.
Why Is Ecommerce Conversion Rate A Crucial Metric?
Conversion rates are a significant factor for ecommerce businesses.
It likely determines your business’s success.
When you have a huge conversion rate percentage, it implies that your marketing strategy is doing great, enticing the right audience, and providing a great user experience to your user.
Here are some of the top ecommerce conversion strategies as shared by Bing Digital.
Anyhow, it doesn’t mean that other metrics are not necessary. When the other metrics are compared with the conversion rate, it gives an extra edge in the website’s health, performance, and competitiveness.
How Is The Ecommerce Website Conversion Rate Calculated?
The average global ecommerce conversion rate ranges between 1% and 4%.
To find the ecommerce benchmark conversion rate, you must divide transactions made by total sessions and express them in percentage.
Conversion rate = Sessions with transactions/Total sessions
Instead of calculating the conversion rate with the number of unique visitors, to get accurate results, use total sessions.
A session is nothing but how often a visitor visits your website in a given time. If the person visits twice or more, it counts them as one.
So, the more often the users check your website and examine your product is an indicator of the users buying intent. They might go back and forth to evaluate the best pricing option. So, if you try to measure the conversion percentage by the unique number of visitors, it might be hectic, and you won’t get a correct answer.
That’s why you should consider the session count.
Setting Benchmarks For Your Conversion Percentage
Before setting your ecommerce benchmark, you must consider certain factors to formulate your own KPIs. Here they are:
1. Ecommerce Conversion Rate By Device
Setting benchmarks for your conversion percentage considering specific devices – such as smartphones, tablets, and desktops is wise to formulate your KPIs.
Irp Commerce is an excellent source that regularly updates the conversion rate benchmarks. In the below image, you can see the conversion rate on each device. It says that – mobile has 53%, desktop 42.3%, and tablets 3.7%.
The data shows that mobile has a high conversion rate, whereas tablets have the lowest. Hence, optimize your website speed, mobile responsiveness, and images to deliver a seamless user experience.
Also, one more point to notice about the voice search SEO industry is that it is found that 42% or users shop online using voice assisting devices like Google Home and Alexa.
2. Ecommerce Conversion Rate By Country
Each business market differs in different countries. India will have a different conversion rate than the UK, for example.
So, before fixing your KPI’s, it is an excellent source to assess your targeting language and country-specific.
Here are some factors that determine the conversion percentage of the country:
- Mature markets
- Purchasing power parity (PPP)
- Credit card penetration (CCP)
- Logistics and distributions.
Growcode, another benchmark updating website, published data that says Germany has the highest conversion percentage of 2.22, whereas Italy has the lowest with 0.99%.
Therefore, choosing your KPIs considering the country conversion rate and the benchmark is savvy, as your business might have the lowest conversion rate.
3. Ecommerce Conversion Rate By Channel/Source
It is also significant to consider the conversion rates based on the channel and source. Doing so will enhance productivity and reduce unnecessary marketing costs.
Therefore, collecting data of the channel/source from your in-house analytics, competitor, and industry market enables you to formulate your own KPI’s.
For instance, traffic can come to your site via text channels such as search engines or video channels such as YouTube or social media. You can also leverage the top AI-powered video-makers to drive more qualified traffic to your site to raise conversions.
It helps you find the source or channel that allows you to drive quality traffic that converts, removes the other sources from the marketing strategy, and focuses on those that drive traffic to your website.
According to Unbounce, the conversion rate for visitors from social media is twice the times higher than paid traffic.
If one channel or source works the best for your competitor, it doesn’t mean it will do the same wonder for you. Some significant specific channels are fixed for certain ecommerce businesses.
And here is another data from Growcode. That says, referrals and emails seem to have the highest conversion percentage irrespective of the industry.
4. Ecommerce Conversion Rate By Industry
The conversion percentage benchmark varies across different industries. Therefore, while drafting your marketing goal and benchmarking, it is better to consider your specific industry market’s conversion rate and the performance of your industry’s ecommerce store, then formulate your KPIs.
According to Statista, the worldwide retail market conversion rate entails different industries collected in 2021. You can see the top performer – the food and beverage sector at 5.5% and next to it, hold the hair care industry with 3.5%.
Whereas the lowest conversion percentage industry is the luxury handbags with 0.6% and next to it is the home furniture with 0.65%.
Therefore according to the industry, the data varies, so ensure and consider your enterprise to set your own KPIs.
Now, you have plenty of ecommerce studies – covering various metrics and are published every year.
Hesitating and avoiding paying attention to it can make your business go in vain and remain still while your competitions are hijacking the market.
So, every step you take in this marketplace is crucial. Because you’re spending hundreds and thousands of money and all your digital efforts on it. So, based on the well-research studies and the above-given ecommerce benchmark consideration you determine your KPIs. It is the only possible way to sharpen your business optimization activities.